DraftKings (NASDAQ:DKNG) Sets New 52-Week Low Following Analyst Downgrade

DraftKings Inc. (NASDAQ:DKNG)’s share price hit a new 52-week low on Tuesday after Canaccord Genuity Group lowered their price target on the stock from $54.00 to $50.00. Canaccord Genuity Group currently has a buy rating on the stock. DraftKings traded as low as $25.73 and last traded at $26.3380, with a volume of 10502794 shares traded. The stock had previously closed at $27.42.

A number of other equities research analysts have also recently issued reports on the stock. Mizuho dropped their price target on shares of DraftKings from $54.00 to $46.00 and set an “outperform” rating on the stock in a research note on Thursday, November 13th. Sanford C. Bernstein cut their target price on shares of DraftKings from $50.00 to $41.00 and set an “outperform” rating for the company in a research note on Monday, November 10th. Stifel Nicolaus cut their price objective on DraftKings from $46.00 to $44.00 and set a “buy” rating for the company in a research note on Friday. Berenberg Bank set a $43.00 price target on shares of DraftKings and gave the company a “buy” rating in a research note on Thursday, October 9th. Finally, Guggenheim lowered their target price on shares of DraftKings from $45.00 to $42.00 and set a “buy” rating for the company in a report on Thursday, January 29th. Twenty-four equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $46.27.

Insider Buying and Selling

In other news, insider R Stanton Dodge sold 52,777 shares of the stock in a transaction dated Tuesday, January 20th. The shares were sold at an average price of $32.01, for a total transaction of $1,689,391.77. Following the transaction, the insider directly owned 500,000 shares in the company, valued at $16,005,000. This represents a 9.55% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Gregory Westin Wendt bought 10,000 shares of the firm’s stock in a transaction that occurred on Tuesday, November 11th. The stock was bought at an average cost of $30.27 per share, for a total transaction of $302,700.00. Following the completion of the transaction, the director directly owned 10,000 shares of the company’s stock, valued at approximately $302,700. The trade was a ? increase in their position. The SEC filing for this purchase provides additional information. In the last 90 days, insiders have sold 166,752 shares of company stock worth $5,252,044. 51.19% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in DKNG. IHT Wealth Management LLC increased its stake in DraftKings by 4.1% during the second quarter. IHT Wealth Management LLC now owns 6,271 shares of the company’s stock worth $269,000 after acquiring an additional 248 shares during the last quarter. Orion Porfolio Solutions LLC grew its holdings in shares of DraftKings by 3.1% during the 3rd quarter. Orion Porfolio Solutions LLC now owns 10,608 shares of the company’s stock worth $397,000 after purchasing an additional 321 shares during the period. Geneos Wealth Management Inc. increased its position in DraftKings by 7.3% during the 3rd quarter. Geneos Wealth Management Inc. now owns 4,793 shares of the company’s stock worth $179,000 after purchasing an additional 328 shares in the last quarter. Valeo Financial Advisors LLC raised its holdings in DraftKings by 3.6% in the second quarter. Valeo Financial Advisors LLC now owns 10,009 shares of the company’s stock valued at $429,000 after buying an additional 348 shares during the period. Finally, Huntleigh Advisors Inc. raised its holdings in DraftKings by 0.8% in the third quarter. Huntleigh Advisors Inc. now owns 43,630 shares of the company’s stock valued at $1,632,000 after buying an additional 363 shares during the period. 37.70% of the stock is owned by hedge funds and other institutional investors.

DraftKings Trading Down 3.5%

The company has a debt-to-equity ratio of 2.51, a current ratio of 1.10 and a quick ratio of 1.09. The business’s 50-day simple moving average is $33.55 and its two-hundred day simple moving average is $37.30. The stock has a market capitalization of $13.17 billion, a price-to-earnings ratio of -46.39, a PEG ratio of 0.47 and a beta of 1.63.

DraftKings (NASDAQ:DKNG) last posted its earnings results on Friday, November 7th. The company reported ($0.26) earnings per share for the quarter, missing the consensus estimate of $0.01 by ($0.27). DraftKings had a negative net margin of 4.90% and a negative return on equity of 22.84%. The business had revenue of $1.14 billion for the quarter, compared to analyst estimates of $1.40 billion. During the same quarter in the previous year, the firm posted ($0.60) EPS. The business’s revenue was up 4.4% compared to the same quarter last year. On average, research analysts anticipate that DraftKings Inc. will post 0.64 earnings per share for the current fiscal year.

About DraftKings

DraftKings Inc is a leading digital sports entertainment and gaming company specializing in daily fantasy sports, sports betting and iGaming products. The company provides an integrated platform where users can participate in daily fantasy contests, place wagers on professional sports events, and enjoy a range of online casino-style games. DraftKings’ proprietary technology supports real-time odds, live scoring and advanced analytics to enhance the user experience across mobile and desktop applications.

Founded in 2012 by co-founders Jason Robins, Matthew Kalish and Paul Liberman, DraftKings began as a daily fantasy sports provider and rapidly expanded into regulated sports betting following legislative changes in the United States.